May 5, 2021

Do Student Loans Affect Credit Score?

Chipper Help

Student loans function like any other loan, with paying on time being good for your credit. Likewise, late payments are bad for your credit score — although there is some leniency with student loan payments because lenders usually offer grace periods before reporting a late payment.

Lenders report the student loans you pay in installments to credit bureaus, which you have the right to check. You can monitor your track record by visiting, which keeps credit reports from all three major credit bureaus: Equifax, Experian, and TransUnion. Since the pandemic began and until April 2022, you can check these reports weekly for free.

If you consistently pay your student loans on time, you can build your credit. Here’s a closer look at how student loans can affect your credit.

Building Your Credit

Like we said, consistent on-time student loan payments are good for your credit score. Credit bureaus record your regular timely payments, so if you ever need to apply for other loans in the future, you could pay less interest when you have a solid record.

Take note, we said future loans. You don’t necessarily need a good credit score to get a student loan, especially for federal student loans. Federal loans don’t require a credit check.

Private loans are another story. These types of student loans usually require a parent with good credit for applicants to qualify for a private student loan. Lenders also perform credit checks to confirm your eligibility for their private loans, making a good record helpful if you want a lower interest rate.

Speaking of parents, if they took out the loan in their name to help with your school fees, it’s their credit score that builds. If you took out a student loan in your name with your parents as co-signers, then both your credit scores build.

Late Payments and Pausing Payments

We mentioned a grace period and leniency when it comes to paying for student loans. Before a lender reports your late payment to any or all major credit bureaus, they allow at least a month of extra time for you to catch up with payments. This grace period depends on the type of student loan you applied for.

For federal student loans, servicers usually allow up to three months of extra time before they report a late payment, while private student loans usually only have a 30-day grace period. Once your lender reports you to a credit bureau, your credit report will get marked with delinquency for seven years.

Should you face serious financial problems, you can change the terms of your student loan without hurting your credit. If you have a federal student loan, you can apply for an income-driven repayment plan. You can ask your lender of private student loans if they offer modified repayment plans. There also are deferment or forbearance enrollment options for temporary payment pauses.


As you now know, student loans work just like other loans. Timely payments are good for your credit score. You can also obtain a much lower interest rate with a higher student loan credit score.

Meanwhile, late payments will hurt your credit score. Even if you can’t pay exactly on time, most lenders offer grace periods of up to 90 days before reporting a late payment to the credit bureaus. If you really can’t pay within the extra time allotted, there are options to have your monthly payments paused.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

See How Much You Can Save with Round-Ups

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